You have wealth when the value of the things you own is greater than the amount of money you owe.

Wealth is the combined value of anything valuable that you own, minus your debts. These things are called “assets.” Assets that increase in value over time, like a house, are called wealth-creating assets.

The more wealth-creating assets you have and the less money you owe, the greater your wealth.

Here are some examples of wealth-creating assets.

Assets that don’t create wealth lose value over time. Here are some examples.

In order to create greater wealth, you need to know the difference between good debt and bad debt. Some debt can actually help you build wealth.